JD.com is the second largest B2C e-commerce marketplace in China, and the largest competitor of Alibaba. The platform offers virtual space to millions of different items from thousands of brands, sold by more than 170.000 sellers to over 471 million active users (80% of whom are aged 18-45, and 65% have university degrees). Over 80% of all on-site transactions are completed via mobile: this makes the platform one of the most attractive e-commerce opportunities in the world, offering access to a young, educated, and digitally savvy consumer base. JD only accepts high-quality products on the platform and guarantees strict quality control. In fact, thanks to its end-to-end logistics approach, JD can easily verify suppliers/distributors and maintain control over sold goods. The company operates 3 sales models: JD Direct Sales, JD Marketplace e JD Worldwide.
1. JD Direct Sales Model
JD.com’s direct sales model is based on JD sourcing products directly from brands and suppliers with operations in China and selling them directly to Chinese customers through its platform and mobile channels. Through the direct sales model, JD offers its users a better and faster consumer experience.
2. JD Marketplace Model
JD marketplace enables well-established, reliable third-party sellers to set up online stores and sell products directly to customers.
3. JD Worldwide Model
JD Worldwide is JD.com’s multilingual cross-border global sales platform which aims to support international brands entering the Chinese market despite not having a physical presence in China, by managing customs, authorisations, logistics and warehousing on their behalf. Through the cross-border e-commerce business model, foreign products can be sold in China without having to deal with the competent local authorities for authorization, which is mandatory for export and sale through traditional channels instead.
The leading platform for imported products in China
JD Worldwide is similar to Alibaba’s Tmall Global: both platforms allow merchants to sell directly to Chinese consumers. While Tmall Global is very well-known among cross-border e-commerce companies, only a few are aware of JD’s cross-border program – JD Worldwide.
Since its launch in 2015, JD Worldwide has attracted nearly 20.000 brands, covering more than 100 countries and regions, giving Chinese users the opportunity to purchase high-quality foreign products. Getting onboard the platform is quite simple: basically, brands that are “internationally established” can register if they provide: business and trademark registration documents, licensing agreements and authorization to sell, a USD bank account for payment. In the onboarding process, most “famous” international brands are given priority. Moreover, to open and manage their own online shop where products are showcased, international brands have to ensure product descriptions in Mandarin, product dispatchment within 72 hours and a Chinese address where customers can return products to.
Thanks to user data collected by JD.com, JD Worldwide buyers can always identify the most suitable foreign products to meet the demand of Chinese customers. In fact, the platform is in charge of testing new products before launching them online.
All imported products then pass through bonded warehouses under the control of JD’s customs officers and quality control inspectors, ensuring that all product details are accurate and in line with import regulations.
Finally, it’s up to JD Worldwide to connect products to Chinese consumers and deliver them via JD distribution services. The efficiency of JD global shipping and warehousing services is guaranteed by the partnership between the company’s logistics network and international logistics companies.
What are the best-selling categories on JD Worldwide?
The top 3 imported categories for JD Worldwide’s consumers are:
– Mother & Baby
Brands are also given the opportunity to boost sales on JD Worldwide through advertisement activities that target the right customers interested in specific product categories.
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